The proposed insured makes the premium payment on a new insurance policy. If the
insured should die, the insurer will pay the death benefit to the beneficiary if the policy is
approved. This is an example of what kind of contract? - ✔️✔️Conditional
What does "level" refer to in level term insurance? - ✔️✔️Face amount
What is the purpose of a free-look period in insurance policies? - ✔️✔️It allows the
insured to reject the policy with a full refund.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon
the death of the insured, and to whom the benefits will be paid? - ✔️✔️Insuring clause
Which of the following best describes annually renewable term insurance? - ✔️✔️It is
level term insurance.
All of the following are examples of third-party ownership of a life insurance policy
EXCEPT - ✔️✔️An insured borrows money from the bank and makes a collateral
assignment of a part of the death benefit to secure the loan.
All of the following are true regarding the guaranteed insurability rider EXCEPT -
✔️✔️This rider is available to all insureds with no additional premium.
An insured purchased a 15-year level term life insurance policy with a face amount of
$100,000. The policy contained an accidental death rider, offering a double indemnity
benefit. The insured was severely injured in an auto accident, and after 10 weeks of
hospitalization, died from the injuries. What amount would his beneficiary receive as a
settlement? - ✔️✔️$200,000
4
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